Workers They Can Fire For Reaching Retirement Age

Workers They Can Fire For Reaching Retirement Age

The arrival of retirement age is considered the end of working life by many workers. Apart from the possibility of delaying said retirement under any of the assumptions contemplated by law, there are cases in which the fact of reaching that retirement age entails something different: dismissal.

The reason is the possibility, by certain companies, of executing forced dismissals when workers reach retirement age . This mechanism must be explicitly included in a collective agreement and can only be done under very specific assumptions. Although it is not a proper retirement, it is classified as a forced retirement due to the difficulties that these workers have to get, if they so wish, a new job at that age.

This mechanism is included in Royal Decree-Law 28/2018 , whose first final provision contemplates a modification of the tenth additional provision of the Workers’ Statute to allow the possibility that collective agreements establish “clauses that enable the termination of the employment contract. work for compliance by the worker of the legal retirement age “.

Although it appears regulated in a collective agreement, it does not affect all company workers or all situations. The text of the law explains that it can only be carried out if two circumstances occur at the same time:

-That the worker who reaches retirement age is entitled, by his previous contribution, to 100% of the pension that corresponds to him at that time.

-That the dismissal is closely related to “coherent employment policy objectives expressed in the collective agreement”. This includes the transformation of temporary contracts into permanent ones, hiring new workers, generational changes or other measures to improve employment.

Thus, the reference age is the ordinary retirement age , which currently stands at 65 years for workers who have at least 37 years and three months of contributions and at 66 years if that contribution level is not reached. In 2022 this will rise to 66 years and two months for people who do not reach 37 years and six months previously quoted.

Changes with the Escrivá reform
However, the outlook may change at the end of the year. The Government plans to approve (it needs the ‘yes’ of Congress and the Senate) the first part of the pension reform devised by José Luis Escrivá , Minister of Inclusion, Social Security and Migration. In it, the forced retirement mechanism is modified with a view to aligning the real age and the effective retirement age.

Thus, it is intended to prohibit forced retirement at least until age 68 , although the measure would be for newly created agreements . Workers with previous agreements in which this mechanism is contemplated will continue to adhere to the previous regulations.

However, Social Security reported that this age could be reduced in certain CNAE sectors “on the condition that the participation of women in those sectors is increased.”

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